Griffin Financial institution has a license to thrill

Welcome to Information World Fintech (previously The Interchange)! I’m filling in for Mary Ann, who’s on a a lot deserved break. This week, we take a look at Griffin Financial institution getting its license forward of some heavy hitters, and we go inside Stripe’s annual letter, some funding rounds, and extra!

The massive story

A prime story for this week was Griffin Financial institution over within the U.Okay. The banking-as-a-service firm managed to do one thing that even the area’s most beneficial fintech firm, Revolut, hasn’t been in a position to do but — receive a banking license. Granted, as Mike Butcher writes, banking licenses are tough to come back by (Griffin’s took a yr), however Revolut has talked about securing a banking license for the previous three years.

Now that Griffin has a banking license, it gives a full-stack platform for fintech corporations to supply banking, funds and wealth options by way of automated compliance and an built-in ledger. Extra doubtless, the corporate will supply banking accounts to companies relatively than shoppers.

Evaluation of the week

Alex Wilhelm and I learn by way of Stripe’s annual letter. Right here are some things that we thought have been value speaking about:

• The corporate’s development is spectacular. It hit the $1 trillion total payment volume mark in 2023, whereas noting its fee quantity rose 25%. That mentioned, if the corporate did, in reality, course of exactly $1 trillion final yr, it could indicate $800 billion in 2022 processing and good points of $200 billion value of TPV in a single yr. At Stripe’s dimension, it’s fairly a consequence.
• Stripe noticed document startup formation in 2023 regardless of the decline in enterprise capital exercise up to now yr. Not solely that, however the funds infrastructure firm additionally reported that these corporations have been 60% extra more likely to begin amassing income inside their first yr, whereas 57% have been extra more likely to course of $1 million inside their first yr than these based in 2019.

{Dollars} and cents

We’ve a brand new unicorn. Perfios, an India-based firm offering monetary establishments with real-time knowledge aggregation and evaluation instruments to assist them streamline their buyer journeys and make extra knowledgeable choices, raised an $80 million spherical of funding that boosted its valuation to over $1 billion. Ontario Lecturers’ Pension Plan led the spherical. The corporate mentioned it plans to go public subsequent yr.

Manish Singh additionally wrote about India digital funds app Paytm, which secured an important license it wanted to outlive and keep continuity of a number of core app options. This got here a day earlier than the agency’s banking unit was scheduled to stop operations on March 15 due to regulatory restrictions.

OpenMeter, a startup that developed an open supply platform that helps corporations extra simply monitor their usage-based billing, raised a $3 million round from Y Combinator, Haystack and Sunflower Capital.

What else we’re writing

Reddit’s IPO may change into a possible meme inventory in the way in which the corporate is selecting to set it up. In a new SEC filing, Reddit’s IPO includes round 22 million shares, priced between $31 and $34. Nevertheless, this might get actual attention-grabbing actual fast on condition that Reddit will enable its neighborhood members to promote their shares instantly, as an alternative of being topic to the same old lock-up agreements that sometimes forestall traders from promoting shares for six months after the IPO.

Most subscription cellular apps don’t become profitable, based on an evaluation by RevenueCat. Among the many 29,000 apps it checked out, the corporate discovered that solely 17.2% of apps will attain even $1,000 in month-to-month income, however after they hit that time, the percentages of them rising additional enhance.

TikTok expanded its Impact Creator Rewards monetization program to extra areas and lowered its payout threshold. It’s now in 33 areas throughout Europe, Asia, the Center East and Latin America. This system rewards creators for the results they make by way of TikTok’s AR growth platform, Impact Home. TikTok can be updating this system’s payout mannequin, as creators will now obtain rewards just for results utilized in public movies.

Excessive-interest headlines

HSBC to hire almost 50 bankers for startup, venture lending in US

Green Dot to enable cash transactions for 3 more fintechs

With fintech funding down 70%, here’s what fintech’s high-flyers are worth now 

Maxwell launches POS feature that offers tailored workflows for lenders

JPMorgan sees mixed results from Silicon Valley push

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